Unit Linked Plans (ULIP)
LIC's SIIP (752)
Market-linked savings with life cover, Guaranteed Additions and mortality charge refund
- Entry age
- 30 days (completed) to 54 years (nearer birthday) for 10x cover; 55 to 65 years (nearer birthday) for 7x cover
- Policy term
- 10 to 25 years
- Premium paying term
- Same as policy term
- Min. sum assured
- Basic Sum Assured is 10x annualised premium (entry up to 54) or 7x (entry 55-65). Minimum premium: ₹42,000 yearly, ₹21,000 half-yearly, ₹10,500 quarterly, ₹3,500 monthly (NACH)
Plan overview
LIC's SIIP is a unit-linked insurance plan that combines life cover with market-linked savings through regular premiums invested in one of four funds. It adds Guaranteed Additions at set intervals and refunds the mortality charges if the policy runs to maturity with all premiums paid. It suits investors, including parents buying for children, who want long-term wealth creation with insurance and can bear investment risk.
New to unit linked plans (ulip)? Read our simple guide: ULIP Explained: How Unit-Linked Plans Work →Key benefits
- Life cover of 10 times (entry age up to 54) or 7 times (55 to 65) the annualised premium
- Choice of four funds from low to high risk, with 4 free switches a year
- Guaranteed Additions of 5% to 25% of one annualised premium at the end of years 6, 10, 15, 20 and 25
- Mortality charges refunded on survival to maturity if all premiums are paid
- Partial withdrawals after the 5th policy anniversary
- Death benefit can be paid in instalments over up to 5 years
- Optional LIC's Linked Accidental Death Benefit Rider
Eligibility at a glance
- Plan number
- 752
- UIN
- 512L334V02
- Plan type
- Non-Par, Linked, Life, Individual, Savings Plan
- Entry age
- 30 days (completed) to 54 years (nearer birthday) for 10x cover; 55 to 65 years (nearer birthday) for 7x cover
- Maximum maturity age
- 85 years (nearer birthday); minimum maturity age 18 years (completed)
- Policy term
- 10 to 25 years
- Premium paying term
- Same as policy term
- Minimum sum assured
- Basic Sum Assured is 10x annualised premium (entry up to 54) or 7x (entry 55-65). Minimum premium: ₹42,000 yearly, ₹21,000 half-yearly, ₹10,500 quarterly, ₹3,500 monthly (NACH)
- Maximum sum assured
- No limit on premium (subject to underwriting)
- Premium payment modes
- Yearly, Half-yearly, Quarterly, Monthly (NACH only)
How the plan works
SIIP is a non-participating unit-linked life insurance plan. In this policy, the investment risk in the investment portfolio is borne by the policyholder; fund values can rise or fall with the NAV. You pay regular premiums for the full policy term. After the premium allocation charge, each premium buys units of the fund you choose. Other charges are recovered by cancelling units or through the NAV. The plan offers no liquidity in the first five years (5-year lock-in). It can be bought through agents and other intermediaries or online at www.licindia.in.
| Item | Limit |
|---|---|
| Entry age | 30 days (completed) to 65 years (nearer birthday) |
| Basic Sum Assured | 10x annualised premium (entry up to 54); 7x (entry 55 to 65) |
| Policy term | 10 to 25 years |
| Premium paying term | Same as policy term |
| Maturity age | 18 years (completed) to 85 years (nearer birthday) |
| Minimum premium | ₹42,000 yearly / ₹21,000 half-yearly / ₹10,500 quarterly / ₹3,500 monthly (NACH) |
| Maximum premium | No limit, subject to underwriting |
| Top-up | Not allowed |
For a child under 8 at entry, risk cover starts 2 years after the policy start or on the policy anniversary after age 8, whichever is earlier. A policy on a minor vests in the child at the policy anniversary after age 18.
Death benefit
- Before risk starts (young children): unit fund value.
- After risk starts: the highest of (a) Basic Sum Assured, (b) unit fund value, or (c) 105% of total premiums received. Partial withdrawals in the two years before death are deducted from (a) and (c).
Mortality, accident benefit and administration charges taken after the date of death are added back. The policyholder can choose to have the death benefit paid in instalments (yearly, half-yearly, quarterly or monthly) over up to 5 years; the money stays invested at the nominee's risk during this period.
Maturity benefit
On survival to maturity you receive the unit fund value. If all premiums have been paid, the total mortality charges deducted for the life cover (excluding underwriting extras and taxes) are refunded along with it. This refund is not paid on surrendered or discontinued policies.
Guaranteed Additions (in-force policies, added to the fund):
| End of policy year | Guaranteed Addition (% of one annualised premium) |
|---|---|
| 6 | 5% |
| 10 | 10% |
| 15 | 15% |
| 20 | 20% |
| 25 | 25% |
They are reduced proportionately after partial withdrawals and are not paid on reduced paid-up policies.
Fund options
| Fund | Govt/corporate debt | Money market | Listed equity | Risk |
|---|---|---|---|---|
| Bond Fund | At least 60% | Up to 40% | Nil | Low |
| Secured Fund | 45% to 85% | Up to 40% | 15% to 55% | Lower to medium |
| Balanced Fund | 30% to 70% | Up to 40% | 30% to 70% | Medium |
| Growth Fund | 20% to 60% | Up to 40% | 40% to 80% | High |
The entire fund is in one fund type at a time. Four switches per policy year are free; after that ₹100 per switch. Discontinued policies move to the Discontinued Policy Fund, which earns at least the regulatory guaranteed rate (currently 4% p.a.).
Charges
- Premium allocation charge: Offline 8% in year 1 and 3% from year 6; online 3% in year 1, 2% in years 2-5 and 1% from year 6 (as a % of instalment premium).
- Policy administration charge: From the 6th policy year, ₹150 per month, rising 5% a year from year 7, capped at ₹500 per month.
- Mortality charge: Age-based, on the sum at risk. Sample annual rates per ₹1,000 sum at risk for a healthy life: age 25 ₹1.26, 35 ₹1.62, 45 ₹3.48, 50 ₹5.99, 60 ₹15.07.
- Accident benefit charge (if rider opted): ₹0.40 per ₹1,000 accident benefit sum assured per year (₹0.80 for police duty, other than paramilitary).
- Fund management charge: 1.35% p.a. for all four funds; 0.50% p.a. for the Discontinued Policy Fund.
- Discontinuance charge: Only if discontinued in the first 4 years; nil from year 5.
- Partial withdrawal charge: ₹100 per withdrawal. Switching charge: ₹100 beyond 4 free switches. Miscellaneous charge: ₹100 per alteration.
- GST applies on charges. Charges (other than mortality and accident benefit) may be revised within IRDAI caps after 3 months' notice.
Optional riders
- LIC's Linked Accidental Death Benefit Rider (UIN: 512A211V02): can be added at any policy anniversary if at least 5 years of term remain, up to age 65 (nearer birthday); cover runs to maturity or age 70, whichever is earlier. Not available during minority. Accident Benefit Sum Assured cannot exceed the Basic Sum Assured.
Loan, surrender & revival
- Loan: Not available under this plan.
- Partial withdrawal: After the 5th policy anniversary if all premiums are paid (for minors, only after age 18). Maximum per year: 20% of fund in years 6-10, 25% in years 11-15, 30% in years 16-20, 35% in years 21-25, keeping at least 3 annualised premiums in the fund. Sum assured is reduced by the withdrawal for the following two years.
- Surrender: During the 5-year lock-in, the fund value less discontinuance charge moves to the Discontinued Policy Fund and is paid at the end of the lock-in. After the lock-in, the fund value is paid with no discontinuance charge. A surrendered policy cannot be reinstated.
- Discontinuance: If premiums are not paid within the grace period during the lock-in, cover stops and the fund moves to the Discontinued Policy Fund. After the lock-in, the policy becomes reduced paid-up with sum assured reduced in proportion to premiums paid.
- Revival: Within 3 years from the first unpaid premium (or up to maturity, if earlier, after lock-in), by paying all due premiums without interest, subject to underwriting.
Other key terms
- Grace period: 30 days for yearly, half-yearly or quarterly premiums; 15 days for monthly (NACH).
- Free-look period: 30 days from receipt of the policy document; refund is fund value plus unallocated premium and certain charges, less medical costs and stamp duty.
- Compulsory termination: After 5 years, if the fund cannot cover charges, the policy ends and any balance is refunded.
- Suicide: Within 12 months of risk start or revival, only the fund value is paid (not applicable if entry/revival age is below 8).
Who should buy LIC's SIIP?
- Long-term investors who want market-linked growth along with life cover
- Parents planning for a child's future (policy can be taken from 30 days of age)
- People comfortable choosing between debt and equity funds and bearing investment risk
- Savers who value Guaranteed Additions and refund of mortality charges for staying invested till maturity
Frequently asked questions
What is the entry age for LIC SIIP (Plan 752)?
From 30 days (completed) up to 54 years (nearer birthday) for cover of 10 times the annual premium, and from 55 to 65 years for cover of 7 times the annual premium.
What is the minimum premium and policy term?
Minimum premium is ₹42,000 yearly, ₹21,000 half-yearly, ₹10,500 quarterly or ₹3,500 monthly (NACH). Policy term is 10 to 25 years and premiums are paid throughout the term.
What do I get at maturity?
The unit fund value, plus a refund of the mortality charges deducted for life cover if all premiums have been paid. The fund value depends on market performance and is not guaranteed.
What are Guaranteed Additions in SIIP?
For in-force policies, LIC adds 5%, 10%, 15%, 20% and 25% of one annualised premium to your fund at the end of policy years 6, 10, 15, 20 and 25 respectively.
Can I withdraw money or take a loan?
Loans are not allowed. Partial withdrawals are allowed after the 5th policy anniversary, from 20% to 35% of the fund depending on the policy year, keeping at least 3 annual premiums in the fund.
Is a rider available?
Yes, LIC's Linked Accidental Death Benefit Rider can be added at a policy anniversary if at least 5 years of term remain and you are not above 65 (nearer birthday).